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Terminating Condominiums According to the Florida Condominium Act: Part III

April 17, 2014 Community Association Industry Legal Blog

This is Part III in a series of Blog posts discussing the process for the termination of condominiums according to Section 718.117 of the Florida Condominium Act. Part I of this series focused on the process for termination due to economic waste or impossibility to continue. Part II discussed the optional termination process, which was added to the statutes in 2007. This Blog post provides an overview of the plan of termination and the required provisions to be included in the plan according to the Florida Statutes.

Terminating Condominiums According to the Florida Condominium Act: Part II

April 11, 2014 Community Association Industry Legal Blog

As discussed in Part I of this Blog series, two scenarios lead to most of the termination of condominiums: 1) the condominium is in a nearly uninhabitable condition and the cost of construction or repairs exceeds the projected fair market value of the condominium property (often due to natural disasters); or 2) the condominium is located on prime real estate and a developer has made an offer to purchase the property for alternative development. Part I focused on the former reason and discussed condominium terminations due to economic waste or impossibility of continuing. This Blog post concerns the “optional termination process” established by the Florida legislature in the 2007 revision of the Florida Condominium Act’s termination provisions. See Fla. Stat. §718.117(3).

Additional Charges for Unpaid Assessments are not Collectible Under Florida’s Safe Harbor Provisions of the Condominium and Homeowners’ Association Acts.

April 7, 2014 Community Association Industry Legal Blog

The U.S. District Court for the Southern District of Florida, on January 3, 2014, issued an opinion explaining what Florida associations can demand from first mortgagees who are protected by the Safe Harbor provisions of the Condominium and Homeowners’ Association Acts. In United States of America v. Forest Hill Gardens East Condominium Association, the court clarified what charges are included under the terms “common expenses” and “regular assessments” as found within the Florida Statutes. U.S. v. Forest Hill Gardens East Condo Ass’n, 2014 WL 28723 (S.D. Fla. Jan. 3, 2014). In short, the court determined that interest, late fees, collection costs and attorneys’ fees were not “common expenses” or “regular periodic assessments” for which first mortgagees were liable under Florida’s Safe Harbor provision. Id. at 1.

Terminating Condominiums According to the Florida Condominium Act: Part I

March 31, 2014 Community Association Industry Legal Blog

While the termination of a condominium may not be an everyday occurrence, it does happen from time to time. The situation occurs frequently enough that the Florida legislature dedicated an entire section of the Florida Condominium Act to it for ensuring that a formal process is in place to protect the interests of all those involved and affected. Specifically, Section 718.117, Florida Statutes, governs this termination of condominium process and provides various procedures to follow depending upon the circumstances causing the condominium’s termination. This Blog post is Part I in a series of posts on this topic and focuses on the termination of condominiums due to economic waste or impossibility of continuing. See Fla. Stat. §718.117(2).

The Remedies Available to Condominium Associations for Rule Violations and the Statutory Process for Enforcement

March 24, 2014 Community Association Industry Legal Blog

When properties within a condominium association are purchased, the purchaser is bound by the association’s governing documents, which can include the declaration, bylaws, articles of incorporation, and rules and regulations. When unit owners violate those governing documents, associations have certain remedies available to it under the Florida Condominium Act. Specifically, Section 718.303, Florida Statutes, provides those remedies and also the procedures that associations must follow to enforce them. This Blog post provides an overview of the statutory remedies available to condominium associations, along with the required procedures that associations must follow to ensure they do not violate the Florida Statues while attempting to enforce their own rules and regulations.

Parking Space Licenses for Condominium Associations are Revocable

March 10, 2014 Community Association Industry Legal Blog

What is the difference between a license, lease, or easement when a resident pays for and enters into an agreement for additional property? This Blog post will analyze the Third District Court of Appeal’s recent decision answering this questions in Keane v. President Condominium Ass’n, Inc., 3D13-746, 2014 WL 626710 (Fla. 3d DCA 2014) and opining on its impact to condominium operations.

Official Records for Condominium Associations: Part 2 of 3

February 18, 2014 Community Association Industry Legal Blog

Section 718.111(12) of the Florida Condominium Act and Rules 61B-22.002, 61B-22.003(3), 61B-23.002(7) and 61B-23.0021(13) of the Florida Administrative Code provide guidelines for the maintenance and inspection of the association’s official records. Part 1 of this 3 part blog identified what records constitute official condominium association documents. This posting will identify what documents are specifically exempt from association official records.

Associations can Collect Unit Owner Past-Due Assessments From Tenant’s Rent

February 5, 2014 Community Association Industry Legal Blog

It is inevitable. Every condominium and homeowners’ association must deal with it. It destroys budgets, makes future planning difficult, and burdens all other responsible unit owners with making up the deficit. You guessed it – delinquent unit owner assessments. Because of the devastating impact that unpaid assessments have on associations, the Florida Condominium Act provides some beneficial remedies for associations to utilize in attempting to collect on unit owner delinquencies. For example, Section 718.116, Florida Statues, gives condominium associations a statutory lien on community properties for unpaid assessments, which can be foreclosed similar to a mortgage foreclosure. Section 720.3085, Florida Statutes, provides homeowners’ associations with that same remedy. Yet, associations often overlook what is arguably the most effective remedy available, which is the association’s ability to collect rental payments from the tenants of delinquent homeowners.

Official Records for Condominium Associations: Part 1 of 3

January 30, 2014 Community Association Industry Legal Blog

Section 718.111(12) of the Florida Condominium Act and Rules 61B-22.002, 61B-22.003(3), 61B-23.002(7) and 61B-23.0021(13) of the Florida Administrative Code provide guidelines for the maintenance and inspection of the association’s official records. This blog post will identify what constitutes association official records, what records are exempt and procedures for requesting and responding to official records requests.

What are Common Expenses of an Association According to Florida’s Condominium Act?

January 14, 2014 Community Association Industry Legal Blog

Florida’s Condominium Act provides that associations have the power to make and collect assessments from unit owners, so long as such power is designated in the association’s declaration. Fla. Stat. § 718.112(2)(g). The board also has the authority to meet each year to discuss the association’s budget and to increase the assessment amount charged to each unit owner if the budget so requires in order for the association to remain solvent. Fla. Stat. § 718.112(2)(e). These assessments are levied to cover the common expenses incurred by the association, which are ultimately the responsibility of each unit owner pursuant to Florida Statutes and most association declarations. See Fla. Stat. § 715.118(2). The phrase “common expenses,” as used in this context, is a legal term defined by the Condominium Act. This blog post explores that definition of common expenses, including what falls under the definition as it relates to condominium associations and unit owner assessments.

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